Merck

Q2 FY2026 EarningsQ2 FY26 results presented a significant miss on the bottom line despite a slight revenue beat of $16.61B vs. $16.37B expected. Performance was severely impacted by $14.7B in one-time R&D charges related to the Terns and Cidara acquisitions, leading to a GAAP EPS of -$0.54 and a normalized EPS of -$0.13, both far below consensus. While Oncology (Keytruda up 5%) and Animal Health (up 8%) showed resilience, generic erosion in the Diabetes franchise and lower Gardasil demand in China remain key headwinds.